Duke Energy will sell $10 billion of coal assets in Tennessee and Indiana, according to a company filing on Wednesday.
The Duke Energy announcement comes less than a week after the company announced a $2 billion purchase of a 30 percent stake in American Wind Energy Inc., a subsidiary of the coal giant Peabody Energy Corp. The coal and oil giant owns a majority stake in the coal mining company.
In a joint statement, Duke Energy and Peabyrne Energy said the sale was part of the company’s strategy to leverage its coal assets for energy diversification.
The companies said they plan to maintain a commitment to the Tennessee coal sector, and also will work with the U.S. Energy Information Administration to ensure continued support of coal.
In Kentucky, Duke has a 25 percent stake, and Peacor is a 51 percent stakeholder.
The companies said the coal purchases will help maintain Duke’s existing coal portfolio, and help expand the company to meet future demand in Kentucky.
Peabyrnge said it is investing in its coal portfolio through a joint venture with American Coal Corp., which has a 50 percent stake.
The two companies also plan to build an 8,000-megawatt solar project in Kentucky and a 1,200-megawatts wind project in the state.
The solar project will be built on a site owned by Peaby Energy.